Modified accrual accounting is used for debt service funds in which of the following ways?

Question

Quizplus · Accepted Answer

Modified accrual accounting is used for debt service funds to account for interest, with the exception that interest is paid when legally due. This means that interest is recognized when earned rather than when received, and expenditures for interest are recognized when incurred rather than when paid. Other transactions in debt service funds are typically recorded on a cash basis.

Modified Accrual Accounting Is Used for Debt Service Funds in Which